Orange trash bins with Foxconn's logo dot the campus. Putting size in perspective Scale matters when you're trying to satisfy global consumer demand. Both Foxconn and Pegatron, another contract manufacturer that assembles iPhones in China, declined my request to visit their facilities. But the job comes at a price. Now worldwide ethics of business relations are widely studied. This isn't about disposable income to see a movie or pick up a cute pair of shoes. Her glasses frame a round, cherubic face. If it were a country, Henan would have the 12th largest population in the world, in an area roughly the size of Wisconsin. It's a bit dingy. As absolutely gargantuan as Foxconn's facility is here, Zhengzhou can handle it. Not a specific job, mind you. While impressions of working for Foxconn vary, one feeling is constant. The relationship between Apple and Foxconn displays a strong primary example of the ethical issue. Li, who is from Huaiyang, about 120 miles southeast of Zhengzhou, knew all about the suicides at Foxconn. These are your best options, Discuss: Riots, suicides, and other issues in Foxconn's iPhone factories, From rocks to recycling: The life of an iPhone, Foxconn addressed several workplace concerns, Watchdog group once again blasts Foxconn, Apple over labor, iPhone 5 sales top 5M units over first weekend, Apple says, Apple supplier Foxconn confirms worker riot at Taiyuan factory, iPhone 5 full review: Finally, the iPhone we've always wanted. Even if it's all to make the company look better, at least Foxconn workers are getting something out of it. There are other, less obvious issues adding to tensions in these teeming facilities. Li Yue, a 21-year-old student, waits outside a recruiting kiosk outside a plant run by Foxconn in Zhengzhou, China. There's plenty more action on the other side of the factory. Foxconn, for its part, has tried to address issues as they’ve come up, making its factories safer and increasing pay to improve morale. To enrich the discussion of global labor, between 2010 and 2016, we studied Apple’s value chain, Foxconn’s mode of labor control, and Chinese workers’ struggles. Despite this, Foxconn ultimately faced many ethical issues as a supply chain of Apple’s products. But after she pays rent for a bunk bed in a dormitory room that she shares with seven other Foxconn workers and purchasing food that she often buys at Foxconn's canteen, there's generally no money left to send back to her home. Like plenty of Foxconn employees, she took the job because the money was better than any work she could find at home. "In addition to this ambitious project with the FLA, we've been making steady progress in reducing excessive work hours throughout our supply chain," the company said in its statement. While Chinese authorities are investigating the cause of the riot, Foxconn said that it "appears not to have been work-related." There have been employee suicides, explosions at two plants that make Apple gadgets, and reports of harsh working conditions. "It is sad to say that to some extent, workers also yearn for the peak season because their base pay is insufficient to meet their basic needs, especially for those who have to support their dependents.". And New York. Apple denies claims that staff experience poor working conditions in the Foxconn factory. "It is also clear that our efforts to enhance employee welfare and support are meeting with success and they are saving lives and they are serving as a model for other companies with large employee populations who face similar challenges.". Introduction Apple, the American Multinational Corporation, better known for the iPhone and iPad, is embroiled in a worldwide ethical scandal involving its biggest suppliers, Foxconn Technologies. The Apple-sanctioned March 2012 report on Foxconn, which audited three of the company’s factories, found at least 50 issues violating the FLA code of conduct and Chinese labor law. Both Foxconn and Apple have expressed condolences about last week's deaths, but the former has yet to respond to an email for further comment. Any job. Foxconn, worth $60 billion, is China’s leading employer with an estimated 1 million Henan province, of which Zhengzhou is the capital, has a population of 94 million. She's been on the job three months, moving from Shangqiu, a city of 7.4 million that's 140 miles east of here. On the other hand, Foxconn is a Chinese multinational company that attains contracts to manufacture electronic products for different companies around the world (McCullough, 2012). Apple says it is dedicated to the ethical sourcing of minerals, but the programme found evidence that tin from illegal mines could be entering its supply chain. Although Apple is not directly responsible for ethical dilemma at Foxconn, many critics have associated the situation with Apple while Foxconn is directly responsible for the issue. Workers like Li are in such abundance that they've become a resource in much the same manner as aluminum or plastic. Rows of motorcycles are lined up outside in what must be employee parking, and the sidewalks on this side of the gates are almost entirely empty as workers assemble gadgets inside. Ethical Analysis of Issues- Ethical Frames. "Managers will yell at you if you make the tiniest mistake and they will not assign overtime to you," Liang said. But the new … The life cycle of an iPhone isn't all that different than that of a Samsung or an HTC phone, and nearly every modern mobile phone is made by Asian contract firms, where worker rights aren't protected by federal and state laws as they are in the United States. The Washington D.C.-based Fair Labor Association is currently carrying out an Apple-sanctioned extensive study of work conditions at Apple's top eight suppliers in China, including Foxconn, the world's largest manufacturer with close to 1.2 million workers in China alone. Recent ethical behavior of Apple was the touring and visiting of Foxconn factories in China to monitor the work conditions there. Apple might be afraid of going to a new supplier who But not overwhelming. Foxconn has failed to improve its working conditions and observe standard labor laws and … It's fair to say that for most of them, the only time they'll hold a iPhone 5 is when they're putting one together. 4 Recommendations (300 words) 5 Limitations. On the unethical side poor working conditions there have gone on for years with numerous accidents and fatalities. 2.1 Apple 2.2 Foxconn 2.3 Global Supply Chains 2.4 Ethical Behaviour. "Apple is committed to the highest standards of social responsibility across our worldwide supply chain," the company said. After all, many of us in the West aren't happy with our pay either. The employees were working for long hours and under poor environment, which was detrimental to their health (Seele, 2012). But she still lined up for the interview, during which recruiters asked the most basic questions and look for scars and tattoos, according to Li. "We track working hours weekly for over 700,000 workers and currently have 97 percent compliance with the 60-hour maximum workweek specified in our code of conduct.". I didn't try to walk into buildings, where I'm certain I would have been stopped. "We insist that all of our suppliers provide safe working conditions, treat workers with dignity and respect, and use environmentally responsible manufacturing processes wherever our products are made.". And Pennsylvania. "Foxconn is not perfect, but we have made tremendous progress," the company said, pointing to the hiring of mental health professionals and an expansion of extracurricular activities for employees. That's particularly true as Foxconn opens new factories in inland cities, where opportunities are scarce. digging-for-rare-earths-the-mines-where-iphones-are-born. Cited Work Adams, S. (2012). Discussion threads can be closed at any time at our discretion. And as soon as they leave their jobs, they're replaced by other workers, just as eager as Li to get started. Every worker I chatted with frets over their paltry paychecks. When I point out that Apple, which had $117 billion in cash on June 30, more than the gross domestic product of Bangladesh, might be able to afford paying Foxconn more so its workers could earn a larger paycheck, Ma just shrugged. Subject: Apple and Foxconn controversy from the eye of the consumer Over the last couple years, Apple and Foxconn have been partaking in poor business methods thus causing them a … Apple is a multinational company based in the United States. All Rights Reserved. ZHENGZHAO, Henan province, China -- If you want to understand why iPhones are made in this corner of the world, look no further than Li Yue. Use of child labor was also on the rise since children were providing a cheap source of labor that enabled the company to, To view this post and other posts in this category please pay the amount below. When a major new product such as the iPhone 5 is heading to stores, even more stress is put on that fast-growing manufacturing chain. Day 2: We look at the environmental concerns raised by mining for the raw materials of the iPhone and what happens to iPhones when people get rid of them. But the grounds themselves are clean, if a bit dusty. We delete comments that violate our policy, which we encourage you to read. In conclusion, Apple's and Foxconn's violations were unacceptable. He said his manager will fine him if he doesn't report for his assigned overtime. But most workers with whom I spoke were unaware of the procedure or felt it yielded no results. She eventually would get a job with the company, but in its Taiyuan plant, a 10-hour bus ride away. -A Supplier Code of Conduct is used to set standards for suppliers such as Foxconn to follow government laws and international business policies. Exploring Zhengzhou To find my own answers, I poked around Foxconn's Zhengzhou operation. That's not all that surprising given the hundreds of thousands of people who assemble iPhones. Foxconn’s enormous Longhua plant is a major manufacturer of Apple products. Apple is a multinational company based in the United States. And she had read articles online about the working conditions at the company's plants. Wages may be high compared with other jobs in China, but they are sometimes barely enough to cover rent in the huge dormitories in which employees typically live, and still leave workers with money to send to family members in villages who live on even less. These workers want enough cash to pay for food and rent and send a bit home for relatives who have even less money. PS5 restock news: Inventory updates for for GameStop, Best Buy, Walmart, Amazon and Target, Xbox Series X inventory update: Get restock news for Amazon, Best Buy, Target, Walmart and more, Shopping for under-$100 holiday gifts? Nearly every worker with whom I chatted had a complaint. And employees are often reluctant to make waves simply because there are so many other people who would happily trade places with them. Among the hundreds of companies producing and selling consumer electronics, Apple is frequently cited as the poster child of companies partnering with factories in China that are engaged in unethical and inhumane labor practices.“Your Conscience Calling” (shown here) was a graphic used in a February 2011 Wired Magazine article about Foxconn. © 2020 CNET, A RED VENTURES COMPANY. And she's terribly worried about rumors that property management company that runs the dorms in which she and 85 percent of the Zhengzhou workforce live is going to increase its rent. True, virtually any major consumer electronics product carries similar labor and environmental issues. But then, China is massive, with more than 1.3 billion residents. These are two separate entities operating in different geographical areas. All of a sudden Foxconn and Apple were inundated with questions regarding ethics in their business. All of these events were as a result of the workers’ poor living conditions, inadequate health care benefits and a load of overtime hours. You might think the complaint sounds familiar. The company also noted that workers could complain through its union. The streets near Foxconn's Zhengzhou dormitories are lined with vendors, selling food and clothes. She spoke more than passing English. And Apple's PR moves on this issue have involved more than just words. Foxconn, which makes products for Apple and plenty of other tech giants, including Dell and Hewlett-Packard, is huge, employing 1.1 million people in China. Ethical Dilemmas There were many ethical dilemmas after the Foxconn Apple scandal was exposed. "They pay more than other companies.". Apple is not ignoring the issue. -Audits conducted by Apple still find ethical violations with its suppliers. -A Supplier Code of Conduct is used to set standards for suppliers such as Foxconn to follow government laws and international business policies. Late Sunday night, the Taiyuan factory, with more than 79,000 workers, was roiled by violence. -Apple does have an opportunity to cultivate better relationships with its current partners. The purpose of the paper is to provide the overview of the ethical issue, analysis of the dilemma using ethical lenses, and provide some recommendations to reduce the issue. Many of the beefs were mundane, such as the tedium of doing repetitive tasks on Shenzhen production line or having a roommate in the Pegatron dormitory who evidently has particularly malodorous feet. Chinese media report Foxconn plans to employ 300,000 workers here within a few years, but it's still all Foxconn and Apple can do to keep up with demand. Foxconn granted her wish. She was bright and engaging. She left her 1-year-old daughter back in Shangqiu with her mother and hasn't seen her since she left home. Apple Chief Executive Tim Cook at the iPhone 5 launch. She puts in eight-hour days, five days a week, and tries to get as much overtime as possible. After listening to workers here, as well as at Foxconn's Shenzhen plant and Pegatron's Shanghai facility, a complex picture of working conditions emerged. As for her husband, he's working somewhere in southern China, though she's not really sure where. It cited "inadequate training and protection" for employees using chemicals in the production process. Foxconn was the main social actor cited in most news coverage. "When the peak season comes, they are tied to the production lines with just one day off in 13 working days, or no rest day at all in a month, all to cope with the public demand for the new Apple products," the report says. Foxconn, which makes products for Apple and plenty of other tech giants, including Dell and Hewlett-Packard, is huge, employing 1.1 million people in China. Apple organization faces critical decisions in the pursuit for the economic success. They are nondescript brick structures, often 12 stories high, row after row of them. Litter is strewn on the streets and plastic bags tumble with the breeze. After several suicides and suicide attempts at Foxconn's factories, including this one in Shenzhen's Guanlan neighborhood, the company installed netting to discourage employees from jumping off its buildings. No one stopped us. They move among cities such as Taiyuan, Zhengzhou, Shenzhen, and others where iPhones are made as needs arise. And in response to the wave of press coverage about and activist condemnation of the conditions at those plants, Apple Chief Executive Tim Cook took offense at any suggestion that the company is indifferent to the workers in its supply chain. "They complain that they can't work more hours.". Despite this, Foxconn ultimately faced many ethical issues as a supply chain of Apple’s products. Apple has defended its ethical standards after a newspaper reported factories in China rely on child labour, 24 hour days and unsafe conditions to manufacture iPhones, iPads and computers. The weekend violence is the latest in a growing list of incidents that have heightened concerns over conditions in factories that make iPhones and other high-volume tech products. Most factory workers are paid about 4,000 yuan ($562) a month, one CLW investigator found. She's referring to people like Li Yue, the new Foxconn recruit I met who hopped on the bus to Taiyuan. "I am required by the factory to do overtime," says a 26-year-old man whose family name is Zhang outside the gates at Pegatron's Shanghai factory. I contacted Apple during my reporting for this project. Essay about Foxconn and Apple 1630 Words | 7 Pages. A report released the day before the iPhone 5 debuted, from Students and Scholars Against Corporate Misbehavior or SACOM, a Hong Kong watchdog group, painted an entirely different picture. But for Ma and her colleagues, the pay, while better than that for most other non-skilled jobs in China, rarely covers their most basic needs. (Foxconn raised wages in Zhengzhou on August 1 to 1,800 renminbi, about $283. I came to this city because I wanted to explain how an iPhone comes to life and the consequences of meeting prodigious global demand. Foxconn said "a personal dispute between several employees escalated into an incident involving some 2,000 workers," leading Foxconn to suspend operations at the plant for a day. Meet the Chinese activist trying to improve conditions for Foxconn employees. What makes life hard at the giant plants that make iPhones and other staples of high-tech life? Consider Zhengzhou. But there's a downside, as the riot in Taiyuan reminds us. The ethical issues that are presented are low working conditions, low wages and long working hours. The Apple-sanctioned March 2012 report on Foxconn, which audited three of the company’s factories, found at least 50 issues violating the FLA code of conduct and Chinese labor law. The relationship between Apple and Foxconn is that Apple outsources the production activity of its products to Foxconn. Dormitories form a changing skyline social responsibility across our worldwide supply chain, '' liang said `` most the... 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